New homeowners often focus on the price of the property, but not the additional fees, stamp duties, and recurring charges. It’s a common mistake to think these “miscellaneous” costs don’t amount to much – in fact, they can sometimes be the deciding factor when it comes to real estate investment. Even for homeowners, it’s best to keep the following in mind, so you can budget appropriately.

Let me quickly illustrate what I mean.

Say you buy a $1 million condo, and sell it for $1.2 million after 5 years. While it would be common to say you’ve made $200k in profits, here’s what it could look like after you’ve accounted for other costs:

Description Amount
BSD $24,600
Legal Fees $2,750
Reno $45,000
Buying Costs $72,350
Commissions $24,000
Legal Fees $2,750
Selling Costs $26,750
Profit ($1.2M – $1.0M) $200,000
Less: Interest over 5 years $44,604
Less: buying cost $72,350
Less: selling cost $26,750
Net Profit $56,296

Note: All information here is relevant as of September 2021. We will update this article periodically, as stamp duties, policies, etc, change.